How much does probate cost?

Probate is the legal process that may be needed when someone dies and leaves assets behind. It gives the Executor the legal right to manage the deceased’s estate. This process often involves identifying and valuing assets, paying debts and expenses, and distributing the remaining estate to beneficiaries.

While probate is often necessary, it can be costly. Whether you’re an Executor, a beneficiary, or simply want to understand probate costs, this guide will help explain what to expect.  

What affects the cost of probate?

Several factors can influence probate costs:

• Estate value: Larger estates often have multiple assets and may need to pay Inheritance Tax (IHT). These estates usually require more work.
• Estate complexity: Complex estates may include foreign assets, disputes, or issues with Trusts.
• No Will: If there’s no Will, the estate is considered intestate. This means assets are divided according to the law, which can increase costs if beneficiaries are hard to locate.
• Property ownership: Dealing with mortgages, valuations, and ownership transfers can add to expenses.
• Inheritance Tax (IHT): If IHT is payable, completing the IHT400 tax form and handling enquiries from HMRC can increase costs.
• Disputes: Arguments among beneficiaries or legal challenges can lead to higher fees.
• Executor's role: Choosing to pass administration tasks to a professional can add extra costs.
• Legal help: Many Executors seek guidance from Solicitors or probate specialists, which also impacts costs. 

Probate and estate administration costs

Professional fees 

• A fixed fee – offering clear costs upfront;
• An hourly rate, which can increase quickly if the estate is complex;
• A percentage of the estate – often more expensive and not always reflective of the work involved. 

Many people prefer fixed fees as they offer clarity from the start. At Kings Court Trust, we only charge fixed fees based on the work involved to ensure fair and transparent pricing. 

For simple estates, Solicitors may charge between **£100 to £300 per hour**, depending on their experience. Complex estates with multiple properties or bank accounts may cost more, especially if extra services like property valuations or tax advice are needed. 

Probate Registry fees 

The government charges fees for issuing a Grant of Probate or Grant of Letters of Administration. As of May 2024, these fees are: 

• £300 if the estate value is £5,000 or more;
• No fee if the estate value is under £5,000. 

The Executor or Administrator must pay this fee before receiving the Grant of Probate or Letters of Administration. 

Inheritance Tax (IHT) 

Inheritance Tax is paid on the value of an estate above a certain threshold. As of February 2023, IHT is charged at 40% on estates exceeding the £325,000 Nil Rate Band. Estates with a family home passed to direct descendants may also qualify for the Residence Nil Rate Band, adding an extra £175,000 to the tax-free threshold. 

Some estates may also combine allowances from a pre-deceased spouse, raising the tax-free limit to £1 million. 

IHT is typically due by the end of the sixth month after the individual’s death to avoid interest charges. Due to the complexity of IHT, seeking professional advice is often recommended. 

Other costs to consider 

In addition to professional fees and Registry fees, there are other potential expenses: 

• Valuation fees: Professional valuations may be required for property, shares, or other assets.
• Property clearance and cleaning costs: Preparing a property for sale can add extra costs.
• Asset transfer costs: These may include conveyancing fees or bank transfer charges.
• Insurance costs: Policies may be needed to protect estate assets during the probate process.
• Disbursements: These are costs paid on your behalf by a probate provider, such as court fees or official document requests. 

How to reduce probate costs

Reducing probate expenses is possible with the following approaches: 

DIY probate 

Executors can manage probate themselves without professional help. This can save money but comes with risks. The Executor is responsible for correctly completing paperwork, valuing assets, paying debts, and distributing the estate. Mistakes can be costly, and the Executor may be held personally liable. 

Fixed-fee probate services 

Fixed-fee probate services provide clarity and peace of mind. Costs are agreed upfront, ensuring no unexpected fees arise later in the process. This can be a cost-effective solution for managing complex estates. Exploring your options can help you find the most suitable and cost-effective way to manage probate costs.